By Jim Utter
Director of Journalism
ZIPS Car Wash announced on Thursday that the company had successfully emerged from Chapter 11 bankruptcy and had appointed a new chief executive officer to lead the restructured operation.
ZIPS, one of the country’s largest privately held car wash operators, voluntarily filed for Chapter 11 protection in early February in hopes of greatly reducing its debt obligations. The company also operates brands Rocket Express Car Wash and Jet Brite Car Wash.
Following the confirmation of the company’s plan of reorganization by a Texas bankruptcy judge on April 18, ZIPS successfully completed its restructuring on Wednesday – less than three months since its original filing.
In connection with ZIPS’ emergence, the company also announced the appointment of industry leader Pete Nani as its new CEO.
Nani brings more than three decades of car wash industry experience and a proven track record of excellence to ZIPS, having played a pivotal role in shaping iconic car wash brands, including Mister Car Wash and Wash Depot Holdings. Most recently, he served as CEO of Clean Freak and Rainstorm Car Wash, owned by Circle K.
“I am thrilled to join ZIPS at this pivotal moment to help lead the company into its next chapter as a stronger, more resilient organization,” Nani said in a statement. “With the financial restructuring completed, a solidified operational footprint, and a renewed focus on sustainable growth, we have a unique opportunity to redefine ZIPS’ future.
“I’m excited to work alongside our talented team to build on the brand’s legacy and deliver with excellence for our customers in the months and years ahead.”
ZIPS emerges under the ownership of a group of its existing institutional investors, who are highly supportive of the company’s ‘go-forward’ strategy.
With a healthier financial foundation and an optimized real estate portfolio, ZIPS said it is poised to seize new growth opportunities, invest in its strongest assets, and continue providing high-quality service at the best value for customers.
Through its financial restructuring, ZIPS said it had reduced its debt obligations and secured access to additional liquidity through a new revolving credit facility to support future strategic initiatives.
The company will continue to operate as usual with no change to its service offerings, customer experience or ZIPS Unlimited Wash Club memberships.
Kirkland & Ellis LLP and Gray Reed served as legal counsel, Evercore Group LLC as investment banker, AlixPartners LLP as financial and restructuring advisor, and C Street Advisory Group as strategic communications advisor.
ZIPS retained Hilco Real Estate LLC to assist with lease negotiations and Paul Hastings LLP is serving as legal counsel to the new ownership group.
At the time of the original court filing, ZIPS had $654 million of total funded debt. Through the plan, ZIPS was expected to reduce its debt obligations by approximately $279 million and secure $15 million of new capital to support the restructured business and “future strategic initiatives.”
As recently as last June, Atlantic Street had invested an additional $70 million in the company. The private equity firm, which focuses on smaller middle-market companies, first invested in ZIPS in May 2020 and increased its investment again in 2022.
ZIPS, headquartered in Plano, Texas, was founded with its first site in Arkansas in 2004, and now operates approximately 260 locations across 23 states under its three brands.
